Stock Bubbles, Propaganda And The Deep State

At the close of the Constitutional Convention of 1787, someone asked Ben Franklin: “have we got a Republic or a Monarchy?” To which Dr. Franklin replied, “A Republic – if you can keep it.” – from the notes of Dr. James McHenry, one of Maryland’s delegates to the Convention

A “Republic” is defined as a State in which the supreme power is held by the people and their elected representatives. The critical foundation of a Republic is Rule of Law. When a person or group of people transcend the Rule of Law, and therefore “rise above” the sovereign power, a Republic no longer exists.

The Republic to which Ben Franklin referred no longer exists in the United States. It’s debatable as to when the Republic status was lost, but the fact that Rule of Law has transformed into Rule of Man is not debatable. The “invisible” entity known at the Deep State is the ruling body in the U.S.

Evidence of this is ubiquitous. For example, Barack Obama’s Attorney General, Eric Holder – the chief enforcer and prosecutor in the United States – said with regard to the obvious crimes committed by the big Wall Street banks: some banks are too large to prosecute. With that, Holder declared that the Too Big To Fail Banks are above the law. Wall Street, in fact, is an integral part of the Deep State apparatus.

Another essential tool of the Deep State operation is the proliferation of propaganda. The socially accepted term for “propaganda” is “alternative facts.” But propaganda is merely a lie that is formulated and presented in a way that a lazy-minded populace will accept as the truth. The Iraq war is good example. The propagandists, like Colin Powell, who helped to enable an illegal attack on Iraq by the Bush regime, have openly admitted they lied to get the public behind the invasion.

The current pre-war “alternative fact” propaganda is this idea that Russia interfered in presidential election in order to influence the outcome. This lie was floated by Hillary Clinton during one of the debates with Trump. That lie has disturbingly transformed into an insidious lie that is promoted by the media and happily accepted by most Americans.

Another big lie seemingly accepted as truth is the stock market. Never before in history has the value of the U.S. stock market been as dislocated from the underling fundamental reality than now. But as long as the Dow and the S&P 500 keep levitating higher, the politicians and economists can point to the stock market as evidence of a healthy economy and “success” with regard to their policies of money printing, credit creation an unfettered Government spending.

(Of course, don’t pay attention to the fact that the median stock that trades on the NYSE is below its 200 day moving averaging and stocks in certain sectors are testing 52-week lows).

In today’s episode of the Shadow of Truth we apply Orwell’s quote – “In our age, there is no such thing as ‘keeping out of politics.’ All issues are political issues, and politics itself is a mass of lies, evasions, folly, hatred and schizophrenia” – to 2017 America:

The author/sorcerer maintains the way forward to “safer and more efficient” markets is less regulation and opacity and more financial coordination and consultation (and consolidation).
Should we be “hedging” against their risk management models because their “aim is to create the standards and processes needed for the market to function efficiently for the next 30 years”, using bigger financial weapons of mass chain reaction than those that already left asset bubbles and stagflation far and wide?
How many quadrillions can they funnel in their underground tunnels before the fault lines of negative interest rates, illiquidity, global deleveraging and default slip away?
“We especially appreciate the global policy-makers – Svein Andresen (Financial Stability Board), J. Christopher Giancarlo (Commodity Futures Trading Commission), Steven Maijoor (European Securities and Markets Authority) and Kay Swinburne (European Parliament), among others – who provided their perspectives on key regulatory issues in the global derivatives markets.”